Assume that you own a portfolio consisting of the following stocks: Stock Percentage of Portfolio Beta Expected Return 25% 1.20 24% 30% 1.60 12% 10% 1.0 20% 20% 0.60 14% 15% 0.85 16% a. Calculate the expected return of your portfolio. (NB: The expected return of a portfolio equals the weighted average of the individual stock's expected returns, where the weights are the percentage BCDE
Assume that you own a portfolio consisting of the following stocks: Stock Percentage of Portfolio Beta Expected Return 25% 1.20 24% 30% 1.60 12% 10% 1.0 20% 20% 0.60 14% 15% 0.85 16% a. Calculate the expected return of your portfolio. (NB: The expected return of a portfolio equals the weighted average of the individual stock's expected returns, where the weights are the percentage BCDE
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 25P
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